SAVELEND GROUP AB Q3 - 1 July –
Amounts in parenthesis refer to the same period the previous year.
- Net revenue for the period was MSEK 40.7 (23.6)
- Adjusted EBITDA totaled MSEK 1.2 (-0.1 MSEK)
- EBITDA was MSEK 1.2 (-1.3)
- EBIT was MSEK -4.2 ( -3.3)
- Net result was MSEK -4.4 (-3.4)
- Earnings per share before dilution were
SEK -0.09 (-0.08).
Period - 1 January –
- Net revenue for the period was MSEK 105.5 (63.8 MSEK)
- Adjusted EBITDA totaled MSEK-8.6 (-2.9)
- EBITDA was MSEK -9.5 (-12.8)
- EBIT was MSEK -24.3 ( -18.8)
- Net result was MSEK -24.8 (-19.4)
- Earnings per share before dilution were
SEK -0.49 (-0.94).
Events during the quarter 1 July – 30 September
- Record loan of MSEK 60 brokered by
SaveLend Group . - CFO and CIO sell MSEK 10 worth of shares to finance the subscription of new shares in
SaveLend Group AB 's warrant program. SaveLend Group reachesSEK 1 billion on the savings platform.
Events after the period
- A group company has been granted permission to conduct certain activities with consumer credits by the
Swedish Financial Supervisory Authority .
CEO COMMENTS
Record in revenue, capital on the savings platform, and total billing transactions. Great acceleration and what a quarter!
There are few companies in these times who can show such success in their reporting. The quarter is therefore one of the most enjoyable for me to report on. This comes despite unprecedented unsettled markets with war close by in
Billion milestone reached
We passed
The growing interest in our savings offering is based on our return spread versus equity markets increasing to now be approximately 30%. Being awarded ‘Best P2P platform’ by Swedish business publication Privata Affärer contributed to greater confidence in both our savings platform and branding. Moreover, our continued run of monthly positive returns since 2016 shows a good measure of stability. We still have much to accomplish regarding brand awareness – a high priority for us to reach a broader portion of the market.
In the quarter, our savers showed their collective strength by financing our largest loan to this date, a MSEK 60 deal with one of our regular borrowers. This demonstrates the strength of our model, and indicates good prospects for the future.
Based on current market conditions, we have experienced significant value from supporting our savers to keep up their good work! A vital component in our efforts is to communicate the importance of long-term continuity for the savings portfolio. Late in Q2, we launched our savings calculator on the website to clearly identify the impact of an active monthly savings plan. For Q3, we continued to encourage our savers to activate a monthly savings plan, to where we now see a doubling of the number of activated monthly savings plans compared to last year, at a faster rate of increase than with new savers.
Revenue
We delivered MSEK 40.7 in revenue for Q3 for EBITDA of MSEK 1.2, which clearly indicates we are heading in the right direction. We are always looking for opportunities to accelerate growth. And when we create or see these opportunities, we will take them. Even if it means higher expenses in any single future quarter. We are a growth company with a scalable platform that our customers appreciate, which is why I’m certain we will deliver on our financial targets.
We can see that our cost base is not growing at the same pace as revenues and our cash flow continues to improve. We have already assured MSEK 10 in our outstanding warrant program, so I am comfortable with our liquidity – as previously announced we have sufficient resources to achieve positive cash flow. In this context, it is gratifying and a show of strength that in relation to this transaction we were also able to attract new long-term owners to the company who in this case were previous investors on the savings platform.
Billecta continues their profitable growth journey
Our billing platform, Billecta, continues their journey while maintaining profitability. We note that Billecta's net revenue grew 48.9% YoY with profitability (EBITDA) at 28.6%. We therefore think more investment in Billecta to accelerate growth is in order. Depending on world events and developments within the group, I plan to step on the gas while still making sure to keep the bottom line black for this component in our business.
Over the year we have clarified our strategy for Billecta and implemented targeted activities toward companies in the property sector and household-related service billing. The feedback we receive is that more businesses want to automate their repetitive billing to improve their margins and quality assure their delivery operations. This focus has begun to pay off. In Q3, 1,069,340 transactions were processed on the billing platform and we welcomed several mid-sized customers in these two categories.
Tailwind and delivery precision
Looking forward, my crystal ball is somewhat cloudier than I prefer due to external factors. However, I feel confident in our platforms, our delivery accuracy, and our ability to swiftly adapt the level of resources we invest in future growth. This presents a comfortable position where we are not reliant on further acquisitions to meet and exceed our financial targets. I sense we have a tailwind for our product and the interest from our contemporaries, as with the award from Privata Affärer and mention as a Saver's favorite by Pinpoint Estimates. We will stay focused on customer utility to keep waking up a growing portion of
Money shouldn’t sleep!
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